Charlie Shrem, an early Bitcoin entrepreneur, has began a project to recreate a historic piece of Bitcoin: the classic Bitcoin faucet.
In a post on X (formerly Twitter) on May 4, Shrem announced his newest project: 21million.com.
The site will be modeled after the very first bitcoin faucet Sparked by Gavin Andresen in 2010 – a simple page that gave away free Bitcoin to anyone who solved a CAPTCHA, just to help a few people get their feet wet with the technology.
Currently, the site only shows a CAPTCHA image and a field to enter your Bitcoin address (and is not funded), however it does show 0 BTC available to claim and Shrem’s page mimics the original version from well over a decade ago, complete with a description explaining what Bitcoin is and how people receive it.
The site seems to hint at a pain of nostalgia for the early days of Bitcoin but with intentions to revive that experience.
Charlie Shrem’s Bitcoin faucet website. Source: 21million.comSo, what’s the trick? Charlie Shrem suggested that, as far as he was concerned, there wasn’t one.
“I want Bitcoin to succeed,” he said. “So I created this little service that gives people a few coins to get started.”
When someone asked him whether he was doing the project by himself or would have someone help him, he replied with exuberance:
“Vibe coded! It was so fun.”
For anyone unfamiliar, vibe coding is writing code using AI tools and creative prompting, more loose and exploratory than a typical development process.
Bitcoin Faucets: The Gateway Drug to the World of Cryptocurrency
Bitcoin faucets were instrumental in raising awareness and promoting the use of the cryptocurrency in the early 2010s.
This incredible amount of Bitcoin was distributed to users who were able to solve CAPTCHAs on Andresen’s Bitcoin Faucet page. At the time, the value of Bitcoin was much lower, making it easier for users to accumulate a significant amount through this method.
However, with the current value of Bitcoin skyrocketing, those who were able to collect and hold onto their earnings are now sitting on a fortune worth $1.86 billion. This serves as a reminder of the potential value that can be generated from early adoption and participation in emerging technologies like cryptocurrency.
This increased user engagement and activity within the Bitcoin network, ultimately contributing to its growth and adoption. By incentivizing users to create wallets and participate in transactions, Andresen’s page helped to spread awareness about Bitcoin and make it more accessible to a wider audience.
This grassroots approach to promoting Bitcoin not only helped to increase its user base but also fostered a sense of community among early adopters. Overall, the use of Bitcoin faucets on Andresen’s page played a crucial role in driving the initial growth and success of the cryptocurrency.
This led to a decline in the popularity of these websites as users were no longer able to earn significant rewards for their participation.
Additionally, the increasing transaction fees made it less cost-effective for users to participate in these programs. As a result, many of these websites either shut down or had to significantly alter their business models in order to remain viable.
The rise and fall of these Bitcoin faucet websites serve as a cautionary tale about the challenges of maintaining a sustainable business model in the volatile world of cryptocurrency.
The trajectory of Shrems involvement in crypto has been an unpredictable rollercoaster.
Shrem co-founded BitInstant, one of the first Bitcoin exchanges in 2011, which facilitated 30% of all Bitcoin transactions at its peak.
The exchange purchased Bitcoin in large batches from Mt. Gox and sold it instantly to customers. Scaling issues arose as transaction volume grew.
BitInstant received financial backing from Roger Ver, Erik Voorhees, and the Winklevoss twins to support its expansion.
Shrem co-founded the Bitcoin Foundation to promote Bitcoin as an alternative to traditional banking. He was later arrested and charged with money laundering related to his company, BitInstant, in connection with customers using Bitcoin for illegal transactions on the Silk Road.
Shrem pleaded guilty to a reduced charge and served one year in prison before being released in 2016.
After serving time in prison, Charlie Shrem returned to the crypto space by founding crypto advisory firm CryptoIQ and a $13 million crypto-focused venture capital fund called Druid Ventures.
He also started The Charlie Shrem Show, a podcast with over 400 episodes featuring prominent figures in the industry. In 2018, Shrem was sued by the Winklevoss twins for allegedly stealing 5,000 Bitcoin from them in 2012.
However, a court overturned an asset freeze against Shrem and ordered the brothers to cover his legal fees in November 2018. The case was ultimately settled confidentially in 2019.
